Johnson & Johnson (JNJ) Stock: Earnings In Focus

Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson is one of the largest healthcare companies out there. Recently, the company reported earnings, and I have to say it was a bit of a mixed report. Nonetheless, I still have faith in the company. Today, we’ll talk about what we saw from JNJ earnings, how the market reacted to the news, and what we can expect to see from Johnson & Johnson moving forward.

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What We Saw From JNJ Earnings

As mentioned above, Johnson & Johnson recently released its earnings report. Unfortunately, the report sent a bit of a mixed signal. While earnings slightly beat expectations, revenue missed the mark. Here’s what we saw from the report:

  • Earnings – For the quarter, it was expected that Johnson & Johnson would produce earnings per share in the amount of $1.42. However, the company actually reported earnings per share in the amount of $1.44. While earnings came in above expectations, the results were still a bit bitter. After all, this is the second quarter in a row that we saw earnings decline. Nonetheless, coming in ahead of expectations is always positive.
  • Revenue – While earnings came in ahead of expectations, top-line revenue was a miss. For the quarter, analysts expected to see JNJ generate revenue in the amount of $17.9 billion. However, the company actually produced slightly lower, reporting revenue in the amount of $17.8 billion.
  • Guidance – With earnings slightly beating expectations and revenue slightly missing, JNJ needed some positivity. Guidance is where it was found. Analysts are currently expecting Johnson & Johnson to produce full year earnings in the amount of $6.35 per share. However, the company released guidance, stating that it is expecting to generate between $6.43 and $6.58 in earnings per share throughout the year 2016.

How The Market Reacted To The News

When it comes to market movers, there are few that are as effective as earnings reports. However, in this particular case, earnings were a bit mixed.  As a result, we’ve seen mixed activity in the market. In fact, since JNJ reported its earnings, we’ve seen relatively flat movement on the stock. Currently (9:42), JNJ is trading at $103.66 after a minor loss of 0.68% so far today.

What We Can Expect To See Moving Forward

In all reality, I’m not too concerned about the revenue miss. After all, earnings came in ahead of expectations and guidance proved to be positive. Not to mention, JNJ has a strong history of producing incredibly positive earnings reports. In fact, over the past 4 consecutive quarters, the company hasn’t missed expectations once. Another thing worth mentioning here is the sheer size of the product offering at Johnson & Johnson. With an incredible list of products, great management, a strong team, and a history of strong earnings, I’m expecting to see long-run gains from JNJ.

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What Do You Think?

Where do you think JNJ is headed moving forward? Let us know your opinion in the comments below!

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